A Cape Cod affordable housing project is getting a boost from state affordable housing financing agency MassHousing in the form of a $1.5 million loan.

“Too many working families on Cape Cod struggle with high housing costs, and MassHousing is committed to helping families achieve prosperity by overcoming housing affordability challenges,” MassHousing Executive Director Chrystal Kornegay said in a statement. “MassHousing’s Workforce Housing Initiative is a powerful and flexible tool for opening new economic opportunities. In partnership with the town of Eastham, Pennrose and our public and private financing partners, we are transforming a vacant lot into a dynamic new housing community and helping ensure that the Outer Cape remains a great place to live, work and raise a family.”

Fifteen of the 65 new apartments at the Village at Nauset Green will be workforce housing units that will be affordable to families earning between 61 percent and 90 percent of the area median income (AMI). The remaining 50 units will be traditional affordable housing units, affordable to households earning up to 60 percent of AMI. The AMI for Eastham is $86,200 for a family of four.

MassHousing is supporting the development of the Village at Nauset Green by providing a $1.5 million permanent workforce housing loan from the agency’s $100 million Workforce Housing Initiative. The project received approximately $12.7 million in equity financing through an allocation of federal and state low-income housing tax credits by the Massachusetts Department of Housing and Community Development (DHCD). Other project financing includes more than $1.55 million in direct affordable housing funding from DHCD, $4.42 million in permanent financing from the Massachusetts Housing Partnership, $8.3 million in construction financing from Bank of America, $1.5 million in community preservation corporation (CPC) funding from the town of Eastham, and $200,000 in CPC funding from the towns of Wellfleet and Orleans. The project is being built on a vacant parcel owned by the town of Eastham.

The Village at Nauset Green will be built at 4300 State Highway in Eastham and the 65 new apartments will be contained in 18, 3-story wood-framed buildings clustered around two common green spaces. There will be 27 one-bedroom apartments, 31 two-bedroom apartments and seven three-bedroom apartments. The development will also feature a pocket park, community building, playground, walking path, on-site management office and sitting areas.

The general contractor is NEI General Contracting. The architect is The Architectural Team and the management agent is Pennrose Management Co.